This information is current as at 24 July 2021**

There has been a large amount of COVID-19 support packages and grants announced in the last two weeks, and this can easily become information overload!

We have prepared this Tax Alert to summarise each of the packages and grants, and we have separated them by State, so you can focus on the relevant packages and grants which may be available to you and/or your business.

COMMONWEALTH announcements

The Commonwealth Government will fund income support payments for those who live and/or work in the areas declared as a Commonwealth Hotspot. To confirm the impacted Commonwealth Hotspot areas currently impacted in NSW, VIC and SA – see each States' list here.

The following table includes extracts from information provided by Services Australia, and the full details of the packages can be found at: https://www.servicesaustralia.gov.au/

Commonwealth support measure

Summary of the assistance

COVID-19 Disaster Payment

Federally funded support for areas recognised a hotspot for Commonwealth support.

The period of support depends on when the area in question was recognised as a hotspot for Commonwealth support and when it stopped being recognised as such.

Amount of support:

First two weeks:

• Loss of less than 20 hours work per week = $325 for each relevant period.
• Loss of 20 hours or more of work per week = $500 for each relevant period.

Third and subsequent weeks:

• $375 for each relevant period where there has been a loss of either: (i) between 8 and less than 20 hours of work per week, or (ii) a full day of "usual work" hours per week.
• $600 for each relevant period for a loss of 20 hours or more of work per week.

Note: "A full day of usual work" is what an individual was scheduled to work, however could not because of a restricted movement order. This includes full time, part time or casual shift of less than 8 hours.

Administered by Service Australia at: www.servicesaustralia.gov.au

General eligibility rules:

• The applicant is an Australian resident or hold an eligible working visa.
• The applicant is 17 years or older.
• The applicant is not getting an income support payment, ABSTUDY Living Allowance, Dad and Partner Pay or Parental Leave Pay.
• The applicant is not getting the Pandemic Leave Disaster Payment, a state or territory pandemic payment or a state small business payment for the same period.
• The applicant lost income and doesn't have any appropriate paid leave entitlements.
• The applicant lives in, works from or has visited a Commonwealth-declared COVID-19 hotspot that is subject to a state restricted movement order.
• The applicant was unable to earn their usual income of 8 hours or more or a full day's work because they were in the COVID-19 hotspot and are subject to restricted movement.

Specific rules will also apply to each recognised hotspot, particularly around eligibility periods.

Note: Eligibility criteria is subject to change through negotiations between the Federal and State Governments and should be reconfirmed before applications are lodged.

Pandemic Leave Disaster Payment

• Available in all States and territories to residents who cannot work because they are required to self-isolate, or they are in quarantine.
• Residents are eligible for $1,500 for each 14-day period they are required to self-isolate or quarantine.

More details can be found at:

https://www.servicesaustralia.gov.au/individuals/ services/centrelink/pandemic-leave-disaster- payment

Victorian support measure

Summary of the assistance

Eligible Business Costs Assistance Package Round Two

Previously successful (business and sole trader) recipients of the Program will receive an additional $2,800.



These payments will be processed automatically in July 2021.

Recipients will receive $2,800, making the total payment of $4,800.

Businesses that had chosen not to apply for these support programs in relation to the May/June lockdown, or had been ineligible to apply but are now eligible, will be welcome to apply for July lockdown support payments and will be considered outside of the automatic top-up process.

Eligible Licensed Hospitality Venue Fund 2021

Previously successful recipients of the Program will receive an additional $4,200.

These payments will be processed automatically in July 2021.

Recipients will receive $4,200, making the total payment of $7,200.

Businesses that had chosen not to apply for these support programs in relation to the May/June lockdown, or had been ineligible to apply but are now eligible, will be welcome to apply for July lockdown support payments and will be considered outside of the automatic top-up process.

Alpine Business Support

Alpine businesses that were eligible for grants of up to $15,000 will receive an additional $3,000, on top of any entitlements under the two Victorian programs above.

We note very limited details are currently available, and if this applies to you, we recommend you follow the Business Victoria page here.

Public events and public events suppliers

A further round of the Impacted Public Events Support Program will open shortly.

Eligible public events and public events suppliers affected by the lockdown will receive support of up to $25,000 and $10,000 respectively through an extension of the Impacted Public Events Support Program.

We note very limited details are currently available, and if this applies to you, we recommend you follow the Business Victoria page here.

Live Performance Support programs

A new round of the Live Performance Support programs will provide:

• up to $7,000 for presenters; and
• up to $2,000 for suppliers.

We note very limited details are currently available, and if this applies to you, we recommend:

• Presenters see Business Victoria page here.
• Suppliers see Business Victoria page here.

Sporting Clubs Grants Program

The Sporting Clubs Grants Program will provide $2,000 grants for community sport and active recreation organisations for events unable to proceed.

Applications are currently open and close on 13 August 2021.

Administered by Sports Victoria at: sport.vic.gov.au

Grants of $2,000 for Victorian sport and active recreation organisations with a payroll of up to $3 million, to compensate for irrecoverable costs greater than $2,000 arising directly from the cancellation or postponement of events during the lockdown from 11:59pm on Thursday 15 July to 27 July 2021.

NSW support measure

Summary of the assistance

2021 COVID-19 Business Grant

Grants of up to $15,000 for businesses, sole trader or not-for-profit organisation impacted by the NSW COVID-19 restrictions.

The grant can be used for business costs incurred from 1 June 2021.

The grant is subject to a turnover test

to determine assistance levels:

• $7,500 for a decline of 30% or more
• $10,500 for a decline of 50% or more; or
• $15,000 for a decline of 70% or more.

Administered by Service NSW at service.nsw.gov.au with registrations open from 19 July 2021.

General eligibility rules:

• Active Australian Business Number (ABN).
• Business was operating in NSW as at 1 June 2021.
• Total annual Australian wages of $10 million or less as at 1 July 2020.
• An aggregated annual turnover between $75,000 and $50 million (inclusive) for the year ended 30 June 2020.
• No other government support available.
• Maintain employee headcount as at 13 July 2021.

Job Saver – NSW Small and Medium Business Support Payments

Eligible entities will receive 40% of their NSW payroll payments, at a minimum of $1,500 and a maximum of $10,000 per week.

For non-employing businesses (ie. eligible sole traders) the payment will be set at $1,000 per week.

Administered by Service NSW at service.nsw.gov.au with applications open from 26 July 2021.

Eligible NSW businesses with an annual turnover of between $75,000 and $50 million that can demonstrate a 30% reduction in turnover (compared to an equivalent two-week period in 2019) will be entitled to business support payments from week four of the lockdown.

Assistance will cease when the current lockdown restrictions are eased, or when the Commonwealth hotspot declaration is removed.

To receive the payment, entities will be required to maintain the headcount of their full time, part time and long-term casual staffing level as of 13 July 2021.

COVID-19 Micro Business Grants

Fortnightly payments of $1,500 per fortnight of restrictions.

Administered by Service NSW at service.nsw.gov.au with applications open in late July 2021.

General eligibility rules:

• Micro businesses (small business or sole trader with annual turnover of more than $30,000 and under $75,000).
• Applicants must have experienced a decline in turnover of 30 per cent.
• The business provides the primary income source for a person associated with the business.

NSW Payroll Tax Deferrals

Businesses can opt in to defer payments on the 2020-21 annual reconciliation return and wages paid in July and August. Interest free repayment plans for up to 12 months will be available.

Deferral of 2020-21 reconciliation (due 28 July) and payments due on 7 August and 7 September until 7 October 2022.

Administered by Revenue NSW at revenue.nsw.gov.au

General eligibility rules:

• Any business paying payroll tax.

NSW Payroll Tax Concessions

Concessions to help reduce overheads for eligible businesses with a 30% decline in turnover.

Payroll tax waivers of 25% for businesses with grouped Australian wages of between $1.2 million and $10 million that have experienced a 30% decline in turnover.

Administered by Revenue NSW at revenue.nsw.gov.au

General eligibility rules:

• A revenue decline of 30%.
• For businesses with Australian wages up to $10 million.

NSW Land Tax Concessions

Land tax relief equal to the value of rent reductions provided by commercial, retail and residential landlords to financially-distressed tenants is available for up to 100% of the 2021 NSW land tax year liability.

A capped grant up to $1,500 for residential landlords who are not liable to pay land tax who reduce rent for tenants.

Administered by Revenue NSW at revenue.nsw.gov.au

Short-term Eviction Moratorium and other Tenant Safeguards

The NSW Government will introduce a short-term eviction moratorium for rental arrears where a residential tenant suffers loss of income of 25% due to COVID-19 and meets other eligibility criteria.

In addition, it will restrict recovery of security bonds, lockouts or evictions of impacted retail and commercial tenants prior to mediation.

More information available at Fair Trading NSW at fairtrading.nsw.gov.au

South Australian support measure

Summary of the assistance

July 2021 COVID-19 Business Support Grant Program

To support South Australian small and medium-sized businesses, with grants of:

• $3,000 for employing businesses; and
• $1,000 for non-employing businesses.

Non-employing businesses under common control will be restricted to one grant for all non-employing businesses.

Non-employing businesses are not eligible to apply if persons associated with the business, and who derive income from it, have applied for, or are receiving, the Commonwealth COVID-19 Disaster Payment.

Administered by South Australian Treasury at www.treasury.sa.gov.au with registrations closing on 30 September 2021.

General eligibility rules (as at 12:01am Tuesday 20 July 2021):

• Be located within South Australia.
• Have an annual turnover of $75,000 or more in 2020-21 or 2019-20, and be registered for GST.
• Have a valid and active ABN.
• Must employ people in South Australia.
• Have an Australia-wide payroll of less than $10 million in the 2019-20 financial year.
• Experienced at least a 30 per cent reduction in turnover in the week of Tuesday 20 July 2021 – Monday 26 July 2021 (inclusive) (compared to the prior week) due to restricted trading conditions.

Businesses will be required to declare that they have experienced a loss or reduction in turnover due to restricted trading conditions.

Businesses will not be required to provide any supporting information at the time of application but will be required to retain supporting information for 12 months.

Supporting information would include:

• Turnover comparison data for the week prior to the assessment period.
• Emails or texts to or from clients or suppliers detailing cancelled orders or appointments.
• Receipts for refunds provided.
• Invoices or delivery dockets.
• Appointment/scheduling platform, demonstrating cancelled appointments or bookings.
• Screenshots of cancelled events.